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Clearing a case raised by the bank after paying the dues

Hi Mr Muhyealdeen,

I was hoping you could answer a quick question for me.

If I have an open legal case against me raised by a bank for unpaid liability, then the liability is paid off, are they obliged to close that legal case and/or issue a NOC?

The reason I ask is that my bank won't close it as I have another outstanding liability and in negotiations to settle, they can only open a civil case for that one, not a legal one.

So my question is, are they legally allowed to keep a case open for a liability that's been paid off? Can they be forced to close it?

Thanks

Hassan Al Riyami Advocates & Legal Consultants
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13 Jan 2019, 07:46

In response to your question, each case is a separate case and any creditor including a bank is obliged to close the case once the dues are paid or have been mutually settled.

They can certainly be requested to close the case that has been fully settled.

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